Gartner, Inc. identified the top five technology trends for 2022 that CIOs need to consider to better prepare for the software, hardware and digital transformations occurring in the automotive sector.<\/p>\n\n\n\n
\u201cFor the last 100 years, automakers have focused on the mechanical side of car development and have mostly left software to other parties,\u201d said\u00a0Pedro Pacheco<\/a>, senior research director at Gartner. \u201cAs digital technology becomes the differentiator in the car, software will become the main profitability growth driver for automakers. Ultimately, the goal for original equipment manufacturers (OEMs) will be to turn\u00a0into\u00a0tech or software companies.\u201d<\/p>\n\n\n\n The top five automotive technology trends for 2022 are:<\/p>\n\n\n\n Automakers\u00a0are reevaluating their long-held inventory strategy following the just-in-time (JIT) principle, which led OEMs and Tier 1 suppliers have no buffer inventory\u00a0to fall back on during the various chip shortages. As a result, automakers are reviewing how they deal with chip manufacturers and considering designing their own chips.<\/p>\n\n\n\n Gartner predicts that by 2025,\u00a050% of the top 10 automotive OEMs will design their own chips\u00a0<\/a>and establish direct, strategic, long-term working relations with chip companies,\u00a0while\u00a0giving up JIT inventory management practice.<\/p>\n\n\n\n 2022 will see\u00a0digital giants,\u00a0such as Amazon Web Services (AWS), Google, Alibaba or Tencent, continuously expand their footprint in vehicle technology. \u201cThese\u00a0tech companies are bringing the car closer to their respective ecosystems, which, in turn, opens new vehicle-connected services,\u201d said Pacheco.<\/p>\n\n\n\n Gartner predicts that by 2028, 70% of vehicles sold will utilize Android Automotive operating system, up from less than 1% today.<\/p>\n\n\n\n \u201cAs developing technology and software on their own is difficult, car companies can either partner with digital giants to succeed in turning software into a main moneymaker or build vast in-house resources to achieve it mostly on their own,\u201d said Pacheco.<\/p>\n\n\n\n In 2021, several tech companies created open-source vehicle architecture operating systems and\u00a0open\u00a0electric vehicle<\/a>\u00a0(EV) platform. This approach of adopting new partnership models in the automotive sector will increase in 2022.<\/p>\n\n\n\n In addition, automotive companies will increasingly look at data in a similar way to that of the tech world. \u201cTheir aim is not to sell data, but to build or integrate ecosystems that will allow them to access a broader diversity of data, with the purpose of developing more compelling features or digital services,\u201d said Pacheco.<\/p>\n\n\n\n Last year saw major changes in the automotive over-the-air (OTA) software market when several car manufacturers began to offer software updates.<\/p>\n\n\n\n As most automakers have updated the hardware on the vehicles to enable software updates, they will now begin to shift to a revenue model that is based on services rather than the sale of the asset.<\/p>\n\n\n\n Gartner analysts predict that\u00a0by 2023, half of the top 10 automakers will offer unlocks and capability upgrades through software updates that can be purchased after the sale of the vehicle.<\/p>\n\n\n\n Despite sensing technologies improving, perception algorithms becoming more sophisticated and\u00a0regulations and standards progressing,\u00a0developers of autonomous vehicles continue to struggle to scale autonomous operations to new cities or geographies.\u00a0<\/p>\n\n\n\n Automakers have begun to announce Level 3 autonomous driving cars and are working on the deployment of Level 4 self-driving trucks and commercial robotaxis. However, proving the safety and effectiveness of autonomous technology is taking a\u00a0long time\u00a0and extensive simulation and real-world testing are making commercialization slow and expensive.\u00a0In addition, issues such as liability in the event of an accident, associated legal and societal considerations, such as how human driven vehicles will\u00a0interact with an AI-driven vehicle, are adding to the challenge.<\/p>\n\n\n\n \u201cThe\u00a0very high R&D costs involved for robotaxis or Level 4 trucks hinder speed of adoption in terms of coverage, but also in delivering ROI. This is ironic given that one of the main advantages associated with autonomous drive is reducing operational costs of transportation,\u201d said\u00a0Jonathan Davenport<\/a>, research director at Gartner.<\/p>\n\n\n\n Gartner analysts predict that by 2030, there will be four times as many Level 4 autonomous robotaxis operating globally than there are taxis in 2022.<\/p>\n\n\n\nTrend\u00a01:\u00a0Automakers Review Their Approach to Hardware Sourcing<\/h3>\n\n\n\n
Trend 2:\u00a0Digital\u00a0Giants\u00a0Integrate the Car Into an Holistic Ecosystem<\/h3>\n\n\n\n
Trend 3:\u00a0Open Data and Open-Source Collaboration Models Gain Momentum<\/h3>\n\n\n\n
Trend 4:\u00a0Established\u00a0Automakers<\/em>\u00a0Ramp Up OTA as Their Main Digital Revenue Channel<\/h3>\n\n\n\n
Trend 5:\u00a0Autonomous Vehicles\u00a0\u2014\u00a0More Regulation in Place, But Commercialization Hurdles Persist<\/h3>\n\n\n\n